'We should be asking Griesa for BoNY deposits'

Cabinet Chief Jorge Capitanich stressed that by changing the debt’s jurisdiction to Buenos Aires the government seeks to protect restructured bondholders and pointed out that the fate of the over u$s 539 millions deposited to restructured creditors in a Bank of New York (BoNY) account is to be determined by US District Judge Thomas Griesa, who has frozen the assets.

Argentina deposited the funds to pay its exchange bondholders last June in a move to avoid default, but they have remained frozen on orders of Judge Griesa.

“We should be asking Judge Griesa, he is the one to solve this,” Capitanich said when asked about the future of the funds deposited in New York in his daily press briefing at government house.

The official said that the government seeks to remove BoNY as trustee since “it has obviously breached the contract,” and to replace it with the local Banco Nación.

Capitanich also announced that the government is working to meet a September 30 deadline. “We are working to guarantee that the payment is received by bondholders,” he said.

“Argentina has honoured the contract. Argentina has paid in time and manner,” the chief of ministers added.